Life in Germany

Kathy and Richard moved to Germany in January of 2006.

Saturday, July 29, 2006

can't screw the employee

I can't say I'm sorry to see Wal-Mart leave Germany. According to an article in the on-line version of Forbes Magazine, Wal-Mart sold all 85 stores to a competitor of Aldi on Friday, 8 years after gaining entry into the German market. The article said that the problem was that "The company's strategic formula is based on a very powerful logistics machine, but also on huge intention to cut workforce and employment costs." In Germany, Wal-Mart couldn't screw the employees with below-poverty-level wages and lack of benefits. I heard that another problem was that Wal-Mart tried to continue its habit of forcing its suppliers to outsource to cheaper countries. But Germans demand the local products that they know and love, not the Chinese version. I think there is a lesson for America in there somewhere.

0 Comments:

Post a Comment

<< Home